|Bid||0.9500 x 0|
|Ask||0.9550 x 0|
|Day's range||0.9500 - 0.9600|
|52-week range||0.8850 - 1.3900|
|Beta (3Y monthly)||0.68|
|PE ratio (TTM)||477.50|
|Earnings date||1 Aug 2019 - 5 Aug 2019|
|Forward dividend & yield||0.08 (8.65%)|
|1y target est||1.23|
Singapore Post (SGX: S08) recently announces its decision to divest its US e-Commerce businesses. Should investors cheer this move?
SINGAPORE (April 4): Singapore Post Limited (SingPost) has announced its intentions to sell its controlling stakes in US e-commerce businesses, Jagged Peak and Trade Global, as part of its strategic review.In filing on Wednesday night, the postage and e-commerce company says it believes its strengths and strategic competitive advantages lie in the Southeast Asia and Asia Pacific region which provides “attractive growth opportunities”.Saying it will make further announcements on the exit from the US e-commerce markets, the group adds that its non-US business units will not be affected by the divestment.“Arising from the strategic review, we will step up our investment to better serve our home market in Singapore, as well as leverage our competitive advantages in Asia-Pacific,” comments group CEO Paul Coutts.SingPost’s move comes in line with analyst expectations given that the two US subsidiaries have been dragging on the group’s bottomline for the past three years since they were acquired in 2015.The group is expected to release its full-year earnings results next month.CGS-CIMB analyst Ngoh Yi Sin had previously lowered her target estimates on SingPost due to expectations of a prolonged turnaround for Jagged Peak and TradeGlobal, despite some earnings improvements in the group’s 3Q financials.Shares in SingPost closed flat at $1 on Wednesday.
Singapore Post (SingPost) reported a 7.6 percent year-on-year rise in total revenue to $441.4 million for 3Q19. Total net profit attributable to shareholders rose 15.6 percent to $50.2 million, mainly due to an exceptional item of $31.8 million relating to the gain on dilution of interest in 4PX, an associated company.
SINGAPORE (Feb 8): Singapore Post (SingPost) says it will be hiring a hundred more postmen and redeploying 35 mail-drop drivers to become full-time postmen as well as increase the number of dedicated counters and staff at post offices, aside from upgrading the skill-set of its postal workers. It also plans to reduce non-core mail businesses, such as advertisement mail, to focus on raising its service levels for its core mail delivery business. SingPost announced the new initiatives after the Infocomm Media Development Authority (IMDA) fined SingPost $100,000 for not meeting quality of service (QoS) standards on delivery of local basic letters and registered mail in 2017.
SINGAPORE (Feb 4): CGS-CIMB Securities is maintaining its “hold” call on Singapore Post (SingPost) while lowering its target price to $1.03 from $1.12 previously, which now implies 19.7 times FY20F P/E. To recap, SingPost recently announced 15.6% higher earnings of $50.2 million for 3Q19 due to higher revenue and an exceptional gain of $28.2 million. In a report last Friday, analyst Ngoh Yi Sin says she expects a prolonged turnaround for SingPost’s US businesses and sees impairment risk in 4Q, given the intense competition and rising number of bankruptcy causes.
Singapore Post (SingPost) recently reported a 2.2 percent year-over-year (YoY) rise in revenues to $368.7 million in 2Q19, but its net profit fell to $25.1 million during the same period. One of the main causes for the drop in the net profit was the $3.6 million loss recorded in the “Share of Results of Associated Companies and Joint Venture” line item. This compares to a profit of S$4.9 million during the same period last year. Management pointed out that the loss during 2Q19 was caused by 4PX, its associate company in China which was responsible for managing the warehouse and infrastructure expansion in the country. SingPost also pointed out that the investment loss in China was the result of the expansion of eCommerce volumes.
SINGAPORE (Nov 7): Singapore Post (SingPost) announced it will be partnering Park N Parcel to include the latter’s collection points included within SingPost’s first-of-its-kind integrated last-mile platform (LaMP). The technology-agnostic platform is able to mesh partner providers like Park N Parcel with SingPost assets, including POPStations, parcel lockers and brick-and-mortar collection points into a unified network, providing unparalleled control and flexibility for deliveries.